The price of Bitcoin is nearly 45% away from its all-time high of $126,080, indicating a troubling trend for the cryptocurrency market. The recent months have ignited concerns among investors and analysts alike, with the onset of this bear market marked by a breach of the 365-day moving average late last year. According to a prominent crypto researcher, the current state of Bitcoin’s bear market is among the worst seen in its history.
BTC Price Is 30% Below 365-Day Moving Average
In a recent post on social media platform X, Julio Moreno, head of research at CryptoQuant, shared his analysis on the current bear market phase. Moreno pointed out that this bearish trend began when Bitcoin crossed below its 365-day simple moving average (SMA). Currently, the cryptocurrency is down approximately 30%, cementing its position among the most severe bear markets in recent history.
As illustrated in the accompanying analysis, Bitcoin’s price performance now stands deeper in the red than typically observed at this point in previous bear markets. For example, during the bear market of 2014, Bitcoin was only about 20% down at a similar stage. Likewise, the 2018 bear market showcased similar resilience with declines hovering around the 20% mark. In stark contrast, 2022 was notably harsher, where Bitcoin faced a staggering correction of nearly 60% from its 365-day moving average at this stage.
The current volatility raises intriguing questions about Bitcoin’s maturity as an asset class. Despite being viewed as more established, it is clear that the leading cryptocurrency still experiences remarkable fluctuations at the onset of a bear market.
With Bitcoin’s future uncertain, certain conditions must be met before a potential recovery can occur. One critical indicator is the apparent demand metric, which has shown signs of decline over the past weeks. The outflow data from U.S.-based Bitcoin ETFs indicates significant capital constraints affecting the leading digital asset.
Bitcoin Price At A Glance
As of now, Bitcoin’s price hovers around $70,500, reflecting an increase of over 2% in the last 24 hours. While there may be slight recoveries, the large-scale sentiment remains cautious.
